Toomey Statement on FSOC, MetLife Decision over SIFI Designation
Washington, D.C.-Today, U.S. Senator Pat Toomey issued the following statement regarding the Financial Stability Oversight Council's (FSOC) decision to end their appeal to designate MetLife as a "systematically important financial institution" (SIFI):
"MetLife should never have been designated as a SIFI. I am pleased that the FSOC has abandoned this mistaken effort and moved to drop all litigation.
"Under President Obama, the FSOC, an ill-conceived creature of Dodd-Frank, was used to make overreaching SIFI designations of non-banks, thus subjecting them to unreasonable, unknown, and unrealistic regulations. It did so in a manner completely lacking transparency and without providing a clear path for de-designation. Furthermore, SIFI designations implicitly declare institutions "too big to fail," thereby subjecting taxpayers to the risk of future bailouts.
"I appreciate Secretary Mnuchin and the FSOC's ongoing efforts to rollback inappropriate SIFI designations and opaque FSOC practices. Despite this progress, Congress still needs to dramatically reform Dodd-Frank so that a future administration is not able to revert back to the failed policies of the Obama administration."